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The table below illustrates the federal estate tax exemption rates through 2011.
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| Year |
Estate Tax Exemption
Amount |
Applicable Estate Tax Credit Amount | |
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| 2006 - 2008 |
$2,000,000 |
$780,800 | |
|
| 2009 |
$3,500,000 |
$1,455,800 | |
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| 2010 |
Estate tax repealed |
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* The federal estate tax exemption amount is $2,000,000 in 2006 increasing to $3,500,000 in 2009. The highest federal estate tax rate is 46% in 2006 and decreases to 45% in 2007-2009. The federal estate tax will be repealed on 1/1/10 until 12/31/10. Beginning 2011, the federal estate tax will be reinstated with a federal estate tax exemption amount of $1,000,000 and a maximum estate tax rate of 55%. Currently, bills are pending in Congress that, if passed, would permanently repeal or otherwise lessen the impact of the federal estate tax.
The concepts contained herein are not intended to serve as advice and may have legal, tax and accounting implications. Consult your Attorney and CPA for advice.
CWEB-L-171A
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